A Penchant for Profits Surviving rapid top-line growth requires a bottom-line focus to keep things under control.
Opinions expressed by BIZ Experiences contributors are their own.
Revenue at software provider Avidian Technologies in Bellevue, Washington,has grown 400 percent annually for the past two years--and 2005promises more of the same. Co-founder and CEO James Wong knows thatsuch growth can be dangerous, and he's doing all he can tocontrol it carefully.
That means vigilantly watching cash flows and bottom-lineprofits. Wong, 33, has strong policies regarding both: Avidiannever ships a product until payment is received and never lets netprofits dip below 15 percent of sales. With cash on hand andprofits to reinvest, Avidian fuels its growth with no significantdebt and no outside investors.
Avidian now has over 7,000 registered users of its software, andsales are approaching $5 million. Still, profits are always onWong's mind.
"I've learned that profitability takes consciouseffort," he says. "If you just keep growing forgrowth's sake, you won't be nearly as profitable."
